Chardan holds Allurion stock at Neutral with a $2.50 target

Published 27/03/2025, 13:52
Chardan holds Allurion stock at Neutral with a $2.50 target

On Thursday, Chardan Capital Markets maintained a Neutral rating on Allurion Technologies (NYSE:ALUR) stock, with a consistent price target of $2.50. Following the release of the company’s fourth-quarter financial results for 2024 and its business update, the firm’s analysts provided their perspective on the company’s performance and outlook. According to InvestingPro data, the company maintains impressive gross profit margins of 67%, though its overall financial health score indicates challenges ahead.

Allurion Technologies concluded the previous year with $15.4 million in cash reserves. In the first quarter of 2025, Allurion successfully raised an additional $15 million in net cash through three separate equity offerings, totaling 3.25 million shares. According to company management, this pro forma cash position is expected to fund operations into 2026. InvestingPro analysis reveals the company is quickly burning through cash, with a significant debt burden of $37.92 million weighing on its balance sheet.

Despite the positive news on the cash front, Allurion has projected a 2025 revenue forecast of $30 million, which marks an 8% decrease from the $32 million reported in 2024. This anticipated decline comes as the company navigates its financial landscape.

In a notable regulatory development, the French National Agency for the Safety of Medicines and Health Products (ANSM) granted Allurion clearance in February 2025 to resume sales of its flagship product, the Allurion Balloon, in France. This approval comes after a period of suspended sales in the French market.

The analysts at Chardan Capital Markets have tempered their expectations for the resumption of sales in France, predicting that it may take time for Allurion’s sales to return to the previous annual levels of $5 to $6 million. For the year 2025, they expect a minimal contribution to the company’s overall revenue from the French market.

In other recent news, Allurion Technologies Inc. reported a significant decline in its Q4 2024 earnings, with revenue dropping to $5.6 million from $8.2 million in the same quarter the previous year. The company also saw a decrease in gross profit, which represented 45% of revenue compared to 78% in Q4 2023. Despite these financial challenges, Allurion has outlined strategic initiatives for future growth, including product innovations and a potential U.S. market entry pending FDA approval. The company is also focusing on reducing operating expenses by 50% in 2025. Additionally, Allurion is developing a new combination therapy that has shown promising initial results. Looking ahead, the company expects steady revenue growth in 2025, with projected revenues of approximately $30 million. Allurion’s leadership remains optimistic, highlighting the potential of combining its Ilerion program with low-dose GLP-1 medications to establish a new standard of care for obesity.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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